A favorable balance as per Pass Book means: MCQ with Answer and Explanation

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A favorable balance as per Pass Book means:

A. Debit balance

B. Credit balance

C. Overdraft

D. Nil balance

Answer: Option B

Solution (By JKSSB Mock Tests)

From the bank's perspective, customer deposits are liabilities. A positive (favorable) balance is therefore a credit balance in the Pass Book.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

Which of the following is a method of inventory valuation?

A. Weighted Average

B. All of these

C. FIFO

D. LIFO

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Correct Answer: Option B

Explanation:
FIFO, LIFO, and Weighted Average are all common methods of inventory valuation.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

A suspense account is opened when:

A. Final accounts are prepared

B. Trial balance does not agree

C. A fraud is detected

D. Cash book shows overdraft

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Correct Answer: Option B

Explanation:
When trial balance totals do not match, the difference is temporarily placed in a suspense account to allow final accounts preparation.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

When starting a BRS with a debit balance as per the Cash Book, cheques issued but not yet presented for payment should be:

A. Ignored

B. Added

C. Divided

D. Deducted

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Correct Answer: Option B

Explanation:
These cheques decreased the cash book balance but not the pass book. To match the pass book, they must be added back.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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